The closure comes two years after the ACT government rolled out its opt-in green waste bins across all of Canberra and is part of the government's plans to rehabilitate all of west Belconnen's landfill sites.

But the territory's opposition says the closure of the facility would mean residents would have to drive further to drop off green waste, resulting in increases to time, cost and emissions.

There are up to 6000 drop-offs a month at the Canberra Sand and Gravel Parkwood Road green waste facility, which is about 1250 tonnes of green waste - even with the green bin rollout.

The ACT government will not renew CSG's lease on the Holt site ahead of its expiry on June 30. The closure of the facility was flagged in 2018, and is due to the territory government's joint venture Ginninderry development.

Once it is closed remediation works will begin to clear the waste from the site.

In an email seen by The Canberra Times, CSG director Wayne Gregory asked the government to either relocate the tip to another block in west Belconnen or to close the tip in stages, which would see the facility continue to operate on its northern end.

CSG has another green waste facility in Mitchell but Mr Gregory said it was currently operating at 90 per cent capacity and would not be able to handle the additional waste from Belconnen, which he estimated could result in another 4000 green waste drop-offs.

As well, the Mitchell facility does not accept trucks meaning north-side commercial businesses would have to go to the Mugga Lane green waste facility.

Liberal members for Ginninderra Elizabeth Kikkert and Peter Cain have issued a joint statement to call on the government to help CSG relocate the Belconnen facility.

"The government has told Belconnen residents to take their green waste to Mitchell and Mugga Lane, that is not practical or acceptable," Mrs Kikkert said.

"West Belconnen residents live in one of the leafier areas of Canberra with mature trees which is good for the environment, but it means for many the green bins are not big enough to cope with the amount of green waste generated."

Mr Cain said he was concerned the government had not grasped the impact of losing the facility.

"I have spoken to many constituents who are concerned about the Parkwood facility closing," he said.

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The issue was brought up in the Legislative Assembly earlier this month, when Mrs Kikkert asked City Services Minister Chris Steel about plans to help relocate the CSG facility.

He said the territory government had no plans to relocate the facility but flagged a review of waste facilities for the north side of Canberra.

"I am not sure that we are planning on relocating them, that is a matter for them. If they want to provide services elsewhere, that is fine," Mr Steel said.

"We are committed to providing drop-off locations at Mitchell and at the Mugga Lane Resource Recovery Centre, through Corkhill Brothers for green waste, for people that want to drop if off for free.

"We are undertaking a review of waste facilities and future provision for the north side of Canberra, which is ongoing."

But the Ginninderry website said relocation options were being considered.

"The Canberra Sand and Gravel Parkwood Road Green Waste facility creates odours which would be incompatible with nearby residential development," it said.

"As Ginninderry residential development moves to the west it will move closer to the green waste facility and options are being explored to resolve the odour problem by relocation of the facility."

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